What Is the Internal Rate of Return on an Investment

question 64

Multiple Choice

What is the internal rate of return on an investment with the following cash flows?
$\begin{array}{|l|l|}\hline \text { Year } & \text { Cash Flow } \\\hline 0 & -£ 123,400 \\\hline 1 & £ 36,200 \\\hline 2 & £ 54,800 \\\hline 3 & £ 48,100 \\\hline\end{array}$

• A)5.93%
• B)5.96%
• C)6.04%
• D)6.09%
• E)6.13%